As Volkswagen seems to resurrect the Scout model in the USA, CEO Herbert Diess has make clear the choice, saying it represents a possibility for the German auto big to “grow to be way more American.” 

VW introduced plans to re-launch the Scout as a fully-electric pick-up and “rugged” SUV final Wednesday, with prototypes attributable to be revealed in 2023 and manufacturing deliberate to start in 2026.

In the identical announcement, the corporate mentioned the automobiles could be “designed, engineered, and manufactured within the U.S. for American prospects.”

“The USA is our greatest progress alternative,” Diess, who was talking to CNBC’s Annette Weisbach final week, mentioned.

He went on to elucidate why the automaker was concentrating on the fiercely aggressive American market.

“We’re nonetheless very area of interest, very small, with about 4% market share [in the country],” he mentioned. “We wish to rise up to 10% market share in direction of the top of this decade.”

Diess pressured that the agency had momentum, was worthwhile and “actually making good progress with the electrical vehicles.”

These automobiles embody the totally electrical ID Buzz, which is impressed by the T1 Microbus or “hippie” van. European variations of the ID Buzz are set to go on sale this 12 months, with gross sales of an American mannequin beginning in 2024.

VW hopes that the introduction of the Scout and ID Buzz will proceed its custom of introducing iconic designs to the U.S. market. Through the years, these have included the Beetle and varied iterations of the Microbus, such because the one pictured above.

The Scout’s historical past dates again to the Nineteen Sixties, when Worldwide Harvester — initially an agricultural firm, now referred to as the Navistar Worldwide Company — began improvement. As we speak, Navistar is a part of the Traton Group, a subsidiary of the Volkswagen Group.

Manufacturing of the Scout ceased in 1980, however Volkswagen’s choice to re-launch it, and Diess’ feedback, present some clues to its technique going ahead.

“If we actually wish to grow to be related in America, we’ve got to have a look at the opposite segments,” he mentioned. “And pick-ups, massive SUVs, are very, very massive in America.”  

Diess went on to explain Scout as a “beloved model in the USA. So it is a good alternative for us to grow to be way more American.”

Requested if the Scout pickup could be solely for the U.S. market, he was non-committal. “I would not say ‘fully devoted’ however at the beginning … it is an American product.”

“It will likely be an American product for American prospects, designed for the American surroundings. Will it’s bought exterior? Possibly, later to be determined,” Deiss added.

VW is planning to arrange a separate and impartial firm this 12 months to design, engineer and manufacture the Scout pick-ups and SUVs for the U.S. market.

Volkswagen’s concentrate on electrical automobiles is a world away from the “dieselgate” scandal that rocked it within the 2010s. As we speak, its electrification plans put it in direct competitors with long-established automakers like GM and Ford, in addition to relative newcomers reminiscent of Tesla.

On the corporate’s general prospects within the U.S. going ahead, Diess was bullish.

“We’re build up capacities in the USA … later this 12 months, round August, ID 4 manufacturing will begin in our Chattanooga services,” he mentioned.

“We’ve applications for Audi and Porsche to extend their market share and … we’ll see some extra merchandise, electrical merchandise, being produced in America, for America.”